1. Pecan pie demand. Your friend Helen B. Carter has left school to open a bakery. She has done some market research and finds that your neighbors value pies according to the following schedule:
Pecan pie MU
1 $40.00
2 $36.00
3 $32.40
4 $29.16
5 $26.24
6 $23.62
7 $21.26
8 $19.13
9 $17.22
10 $15.50
11 $13.95
12 $12.55
13 $11.30
14 $10.17
a. Graph the demand curve for pecan pie. Does the demand curve have a positive or negative slope? Why?
b. How many pies will Helen sell at $19.13? How many at $29.16?
c. What will happen if a new doctor comes to town and tells everyone to lose weight? What will happen if people learn that Helen makes really delicious pies?